D/FW finally breaks through internationally

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File 2012/The Associated Press

Tom Horton (left), then CEO of American Airlines; Qatar Airways CEO Akbar Al Baker; and International Airlines Group chief executive Willie Walsh were on hand for the announcement that Qatar Airways was joining the Oneworld alliance of carriers. Qatar is among the foreign airlines flying to Dallas/Fort Worth International Airport.

As D/FW marks its 40th anniversary, the self-proclaimed economic engine is finally reversing a weakness: international traffic.

Despite all the hype and investment in the lucrative travel segment, D/FW has been a laggard. While it ranks No. 3 among U.S. airports in domestic business, it just cracks the top 10 in international, according to data from the Bureau of Transportation Statistics.

In 2012, New York’s JFK Airport had four times as many passengers leaving the U.S. Miami and Los Angeles had almost three times as many. Bush Intercontinental was well ahead, even though Houston has a similar population and business base.

Attribute the gap to geography first. Travelers from Europe and Asia don’t want to double-back to population centers on the coasts. For those headed to the middle of the country, Chicago and Houston have more international options. And finally, there’s the volatility of American Airlines, the bell cow at D/FW.

All that made for tough sledding in the past. But the trend has turned.

In 2012, D/FW’s international traffic grew 11.1 percent. That’s twice as fast as the industry and the nine international airports ahead of it. In the first half of 2013, D/FW’s growth was even stronger, and good news keeps coming.

In December, after D/FW announced another addition, the airport said this was the most prolific period of international expansion in its history. In the last three years, 25 international destinations and 10 carriers have started or been announced.

American, the key player, added service to Lima, Peru; Seoul, South Korea; and Bogotá, Colombia. In October, American announced nonstop flights to Hong Kong and Shanghai, starting next summer. The gateways to Asia represent a breakthrough for the airport.

In December, Qatar Airways announced daily flights to Doha, Qatar, and Etihad Airways said it would start service to Abu Dhabi.

Last July, D/FW had 635 weekly departures to outside the U.S. Four years earlier, it had 424.

“This is not a market you can ignore anymore; this is a market you have to serve,” said Phil Ritter, an executive vice president at D/FW.

Strong growth in jobs, population and business make Dallas-Fort Worth a bigger destination. Several countries in the Western Hemisphere are booming, too, including Mexico and Brazil. That’s driving business and tourist traffic this way.

American on the rise

American Airlines is ascendant again, riding momentum from its merger with US Airways. Even while in Chapter 11, American added international traffic, because the segment is so strong and profitable.

In general, as American goes, so goes D/FW. (American and its Eagle unit had 82 percent of passengers at D/FW in November.) But since 2011, D/FW’s international growth rate has easily lapped the rate for American’s network.

Some gains are due to good fortune. New long-range jets make it feasible and more economical for international flights to land in the midcontinent. The Oneworld alliance, with American as a leading partner, is gaining traction since regulators lifted restrictions on international routes.

Airlines in the Mideast are trying to establish aviation hubs. As they expand aggressively, D/FW is a natural addition.

Also give the airport credit for making things happen. In 2005, it completed an international terminal and people-mover system, the key pieces in a $2.7 billion capital program. They helped D/FW vault to the top tier of major airports on customer satisfaction, according to industry surveys.

Airport officials have been relentless in selling D/FW, and they get plenty of help from local mayors, convention bureaus and chambers of commerce. Last June, a 25-member delegation went to South America for more than a week to push the cause.

Offering incentives

D/FW offers incentives, too. It pays landing fees and some marketing costs for up to two years. Since 2011, D/FW has spent about $10 million annually on the expense.

Last summer, customs delays gave many airports a black eye, including D/FW. D/FW has added kiosks to speed up the process and agreed to pay for extra help during crunch times.

Why is international business so coveted? The travelers stay longer and spend more. In 2010, the airport estimated that each international visitor spent $1,600 in the region.

That’s just the start. The routes lead to more trade, conventions and outposts for foreign companies.

In the 2010 analysis, officials benchmarked D/FW against an average for Houston, Atlanta and Philadelphia. Match those international metrics, the report said, and the region could get an economic boost of about $2 billion annually.

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About Mitchell Schnurman

Mitchell Schnurman has been writing about business news in North Texas for more than 25 years and has been a columnist since 2001. He joined The Dallas Morning News in 2012 after working at the Fort Worth Star-Telegram and Dallas Times Herald. He championed the lifting of the Wright Amendment, supported the American Airlines-US Airways merger and often weighs in on tax breaks for developers. Seven times, he’s been named one of the country’s “Best in Business” columnists by the Society of American Business Editors and Writers.